I have just setup a server with the following specs....
Intel Core Duo 2
1 GB ram
1.4 terbyte HD space...
Ubuntu linux (of course)

I am offering about 40€ a month for the entire server, and am willing to make any deal you like for a smaller amount.
It has great reliability and I am able to set it up any way you like.
Right now it is setup as a backup rsync server. But I can set it up to do what ever you like.
It is located near the nokia headquarters in Helsinki Finland. It runs 24/7 with genorater and battery backup. VERY reliable and able to fit anyones needs. The server has ALOT of bandwidth and able to do anything you like.

Hope this works for you. If you have any questions or if you think this is too much please feel free to contact me and I can make a deal with you.

Jason Brower